Global Supplier Standard Supply Chain Management...ASN timeliness is critical to information accuracy and functionality. Failure to send ASN’s will result in non-compliance on your

Global Supplier Standard

Supply Chain Management

For External Distribution AE-PSOS-ST-13-E Rev 3.0 Page 1 of 31

Master files are stored electronically and are available to all team members. Printed copies of the master files are for reference only.

Revision Release Date Description of Changes

1.0 01-April-2018 • Initial release

• Added Statement regarding container management (4.4.3)

• Added Statement in Nonconformance section (4.6.2)

• Aligned Scorecard values (4.1.2, 4.6.4 & 4.13.2)

• Removed reference to Supplier General routing guide in forms section (4.7.5)

• Changed ownership for EU MMOG (4.11.2)

• Deleted Excel PDS quote report for NA from Appendix (4.15)

• Added Europe packaging requirements (4.16)

2.0 01-October-2018 • Transferred to new GSSM template

• Eliminated label examples with 1D barcode (4.5.8)

• Added “Vendor number” requirement in 2D barcode (4.5.8)

• Changed PDF417 statement to “Required 2D barcode” (4.5.8)

• Added “Optional or as required” to 2D barcode data content (4.5.8)

• Added “Mixed load” label example (4.5.9)

3.0 01-April 2019 • Packaging Section removed to its own manual

Prepared Approved Released

Process Leader Subject Matter Expert Process Champion BOS Team

Carole Muraske Larissa Shafarenko Kelli Carney Kurt Westphal

Approval records maintained by BOS Team

1.0 Purpose

This standard communicates Adient’s minimum set of requirements to the suppliers. It is the expectation of Adient that all suppliers - Direct and Indirect, Supply Chain and Tooling, Machinery & Equipment - comply with all the requirements and expectations documented in the Global Supplier Standards Manual (GSSM)

2.0 Scope

This standard applies to all Adient 3rd party suppliers.

3.0 Responsibility

All external suppliers (Direct and Indirect, Supply Chain and Tooling, Machinery & Equipment Suppliers) are expected to comply with all requirements and expectations documented in the GSSM.

Suppliers are responsible for reviewing new and revised Adient Requirements including Customer Requirements and determining the impact on their Quality Systems and promoting awareness of the GSSM at their locations

Each Direct and Indirect, Supply Chain and Tooling, Machinery & Equipment Supplier is expected to comply with all requirements and expectations documented in Adient’s Global Supplier Standards.




4.0 Process

4.1 Supply Chain Management Expectations Introduction

4.1.1 Introduction: The supply chain organization at Adient contributes to manufacturing excellence in quality, cost and delivery to the customer. In particular, the supply chain function assures the on-time delivery of component material and shipment of finished goods at the lowest cost.

Continuous improvement in our global supply chain systems is, and will continue to be, a competitive advantage for Adient. This advantage is created through the engineering and design of Lean Replenishment and Logistic Business processes, which are enabled through effective application of Lean Technologies. To fully leverage the potential of these innovative systems and processes, the knowledge and capabilities of our extended enterprise must be flexible and capable of meeting our replenishment requirements.

Total Supply Chain Management is achieved through the execution of comprehensive, common business processes and systems such as:

• IATF16949 standards

• AIAG Materials Management Operating Guidelines

• Adient (Adient) Business Operating System (BOS)

The following are critical supply chain elements that must be in place to execute flawlessly:

• Communicate electronically between suppliers and customers

• Implement/Utilize Lean Manufacturing practices

• Analyze demand (830, 862, 866, etc.) – - Understand and react to schedule variation week to week - Reconcile Cums weekly - Compare demand to capacity

• Proactive communication through the supply chain when there are potential issues in meeting demand requirements

• Ship according to the transportation routing instructions

• Respond to the Customer specified replenishment method(s) and establish Replenishment processes to assure on-time delivery from the extended supply chain

• Respond to “issue communication” tools (DMR, MQR, etc.)

• Development of team members which focuses on: Process knowledge, technical capability, problem solving skills, and leadership ability

• Implement repeatable processes that minimize human intervention, and audit them to assure conformance using the MMOG (External supplier) or MMSA (Internal Adient Supplier)

• Identify and measure key metrics on a monthly basis, with an emphasis on corrective action planning to address metrics that don’t meet goals

4.1.2 Scorecard Performance: There are the following areas that Adient measures to review supplier performance within Supply Chain Management.

Metric Points Chapter Description

DMRd Score 8 DMRs Measures on time delivery

DMRi Score 5 DMRs Measures accuracy of shipment information

ASN Compliance

5 Electronic Commerce

Indicates whether a supplier provides ASNs with every shipment




Trade Agreement

2 Free Trade Agreements

Measures compliance to annual NAFTA submission requirements or other global Trade agreements

The chapters contained in the Adient Supplier Standards manual will instruct you on our expectations for your performance in order that together we may create a supply chain that executes flawlessly each and every time.

4.2 Electronic Commerce

4.2.1 Introduction

Electronic Commerce Requirements - Adient and our automotive customers require EDI (Electronic Data Interchange) to be utilized by all suppliers throughout the Supply Chain. This includes the ability to receive releases (830 - weekly, 862 – daily), and send ASNs (856).

All of our initiatives, policies, and transaction sets comply with the guidelines set forth by the Automotive Industry Action Group (AIAG) / VDA. Our suppliers must have the capability to interface with us in one or more of the following options:

• Traditional EDI package

• Visibility tool (i.e. i-Supply) (Not applicable South America)

• 3rd party provider (i.e. Covisint) (Not applicable South America)

Any updates, new releases, system changes, etc. will be communicated to our partner suppliers by the Adient Supply Chain Management and Purchasing organizations.

All suppliers must develop a contingency plan for their primary EDI system. This allows us to keep both product and information flowing if the primary system fails for any reason. To inquire about the specific details of using EDI with Adient, please contact your Materials Analyst via e-mail to [email protected].

4.2.2 Advanced Shipping Notice (ASN): An ASN is the electronic transfer of shipment data from a supplier to a customer. The customer plant utilizes the information contained within the ASN in three ways:

• Determine and confirm goods in transit.

• Verification against the shipment as product is received.

• If the supplier is ERS (evaluated receipt settlement) approved, the ASN serves as an electronic invoice that will generate payment to the supplier. (Not applicable South America)

Accuracy is imperative in order to maintain the integrity of information related to inventory records, MRP/supplier schedules, and invoice payments. ASN timeliness is critical to information accuracy and functionality. Failure to send ASN’s will result in non-compliance on your Supplier Scorecard, the issuance of a DMR (discrepant material report), and the potential for a charge-back.

The ASN must be created upon finalization of the shipment and be received by Adient within one hour from the time the shipment leaves the supplier's shipping location, or prior to its arrival at the Adient plant, whichever is earliest.

All shifts in a facility must be capable of sending the ASN to meet these requirements. Confirmation of ASN receipt is available to suppliers (contact the Adient plant for availability).

mailto:[email protected]




In order for the ASN to be successfully transmitted to the Adient plant, the ASN must contain all of the SPECIFIED INFORMATION listed below. ASN’s received without a BOL number will fail our rules and not be received, and a DMR will be issued for failure to send an ASN.

1. BOL Number (Bill of Lading)

2. Shipment date/time

3. Gross weight of shipment

4. Net weight of shipment

5. Total Bill of Lading quantity (e.g. # of cartons)

6. Standard Carrier Alpha Code (SCAC)

7. Mode code (e.g. "E" for expedite, "A" for air, etc.)

8. Pool point location (if applicable)

9. Trailer number (or air bill if it's an air shipment)

10. Packing slip number(s)

11. Ship from location (our supplier code or supplier DUNS Code)

12. Ship to location(s) (our plant code(s) including dock code(s)) or DUNS Code

13. Part number

14. Engineering change level (Part)

15. Quantity shipped

16. Unit of measure

17. Purchase order number

18. Number of cartons shipped of each part

19. Quantity per carton EDI SPECIFICATIONS

Note: Additional requirements may be communicated to the supply base, dependent on the OEM customer’s specific requirements.

4.3 International Shipping

4.3.1 International Shipping Introduction: The purpose of this section is to provide suppliers of Adient with a better understanding of their responsibilities as exporters and suppliers. Our goal is to ensure that suppliers are aligned with the procedures of Adient as we strive to adhere to Customs Regulations.

This section contains information regarding:

• Shipment requirements for exports to Adient

• Warehouse & inventory requirements for international shipments

• Documentation requirements

Each supplier to Adient, is responsible for complying with all customs laws and regulations as it relates to their activity with Adient. This includes, but is not limited to, the items outlined in this manual.




4.3.2 Incoterms: Adient uses INCOTERMS 2010 for its standard. The incoterm for each supply chain is negotiated at the time of the contract and will be stated on the Purchase Order when issued to the supplier.

4.3.3 Warehouse and Inventory Requirements: In order to minimize the risk of an inventory stock-out and to support lean manufacturing, our strategy is to utilize a regional warehouse/domestic pick-up point to manage and retain buffer stock inventory for certain international supply chains.

A supplier may manufacture in another country, but they are expected to import to their own domestic warehouse or distribution center. Adient will then pick up the freight at the named domestic facility. If a supplier does not have a domestic presence, Adient will be the importer and will recommend the 3rd party warehouse provider with whom the supplier should contract to manage the buffer stock. Adient will determine on a case-by-case basis when this requirement is necessary and will notify the supplier to implement these requirements.

4.3.4 Customs Brokers: Adient has designated Customs Brokers to clear shipments on our behalf. Suppliers must use the designated broker as per the routing instructions set forth by Adient’s corporate offices.

4.3.5 International Shipment Documentation: Suppliers are responsible for providing complete and accurate documentation for all international shipments. Documents must be sent with each cross border shipment. Documents include, but are not limited to, the Bill of Lading, Packing List, Commercial or Invoice, and a Certificate of Origin (NAFTA or other as requested) where applicable. Incomplete or inaccurate documents may delay the timely delivery of product to an Adient's facility; therefore, failure to supply complete and accurate documentation will result in a supplier DMR and a debit for the cost incurred in a delayed shipment.

4.3.6 Valuation of Merchandise: Suppliers are responsible for stating the proper value of the product being shipped per the terms and conditions of your contract with Adient. Failure to do so may result in a DMR and subsequent DMR debit charge.

4.3.7 Commercial Invoice: A commercial invoice shall accompany each export to an Adient facility. Data required on the Commercial Invoice is as follows:

1. Port of entry to which the merchandise is destined. 2. Consignee (Ship to) complete name and the plant ID # 3. Bill to name, address and tax ID# 4. Shipper address, Tax ID#, contact name, email and phone number 5. Ship date 6. A complete detailed description of the merchandise, including the Adient part number. It is

critical that the Adient part number is listed so that Adient, as the importer, can apply proper HS Classification and FTA eligibility. Do not modify the Adient part number (e.g. add a suffix or prefix). If shipment involves equipment, the invoice must also include the serial #, make # & model # and manufacture date.

7. Quantities, weights (net and gross) and unit of measures of the merchandise shipped. (e.g. liters, gallons, kilograms, lbs...)

8. Purchase price in the currency of purchase. Value of each item in the currency in which the transactions are usually made.

9. Currency (USD, EURO, PES, etc.) 10. All charges upon the merchandise itemized by name/category and amount. (Rebates,

drawbacks, bounties, separately itemized, allowed upon the exportation of the merchandise)

11. Country of origin for each part listed




12. Assists, dies, molds, tools, engineering work and cost associated. 13. Tariff classification number (HTS) 14. Incoterms and stated place 15. Invoice # 16. Signature/Endorsement of shipper 17. Other specific country or regional requirements will be communicated by the region Adient

Trade compliance team.

The commercial Invoice and all attachments must be in the language appropriate for the country of importation. When the above contents are excluded from the invoice, the customs clearance of the shipment may be delayed. Often times a shipment is flagged for examination by customs due to the absence of values, description, and country of origin.

Special Notes:

• Equipment must be invoiced separately from Raw Material.

• Equipment must be separated on different skids from Raw Material

• Invoices must be sent at the time of dispatch of the shipment from origin with an ETA report (Estimated Time of Arrival), specifying the following: - Trailer Number - Quantity of bundles or skid - Time of estimated arrival

4.3.8 Country of Origin Marking: Every article of foreign origin (or its container) shall be marked in accordance with the regulations of the importing country.

4.3.9 International Shipment Checklist

1. Completed Bill of Lading with the name and address of the shipper, the consignee, and the broker. This must be the same BOL # as on the ASN.

2. Completed Packing List 3. Completed Commercial Invoice per guidelines listed above. 4. Completed Certificate of Origin or FTA certificate as needed.

4.4 Shipping and Replenishment Performance

4.4.1 Introduction: The standard for Adient suppliers is 100% on time arrival of all parts required by the Adient manufacturing site. This means shipping the correct quantity of the correct product to the correct location according to the designated replenishment method. It is mandatory that the supplier contact the Adient plant immediately upon recognition of an issue if the release schedule cannot be met. The supplier shall have a process in place to ensure that any potential problems that could impact the Adient operations are communicated as soon as they are identified. Differences shall be resolved with appropriate customer contact prior to shipment time.

It is our expectation that the supplier procures/produces to the high point of the forecast for authorized raw/fab, respectively. Notify your Adient materials manager if you receive 2 or more subsequent releases which show a decreasing authorization.

Suppliers are expected to receive forecasts and releases electronically, and to process them without manual entry. Reference the Adient Electronic Commerce document for further details on electronic transmissions.




In the event a supplier does not receive a weekly release from Adient, they must verify with the plant materials scheduler or manager that no release was sent, escalating the call if necessary for verification. If after multiple attempts (must include BOTH e:mail AND phone call) the supplier is not able to contact Adient to verify release status, the supplier is authorized to use the most recent release to ship to Adient, following established guidelines for shipping to cum required by given dates.

4.4.2 Forecast Expectations: The forecast will grant fab & raw authorizations per the commercial terms between Adient Purchasing and the supplier. Adient will grant the supplier a raw and fab authorization in accordance to the authorization being provided by our customer. For example, Adient may grant 4 weeks raw and 2 weeks fab, for a total of 4 weeks (i.e. you're authorized to convert 2 weeks of the raw, not carry an additional 4 weeks raw). This will be provided to the suppliers via EDI in their releases. Certain commodities may be granted different standards per their release. When EDI is not available alternate forms of communication will be utilized as determined by the Adient plant. Deviations from the standard must be authorized by Adient and will be communicated in the purchase order as well as the release.

Adient has a central forecast department for electronic contract manufacturers. Contract manufacturers will receive periodic forecasts via e-mail which show the forecasted quantities over a predetermined horizon. The expectation is contract manufacturers will use this forecast to drive component planning/purchasing in order to meet the delivery signal sent by our manufacturing plants. The actual delivery/ship signal will be sent according to the process described below in section 5.3. This central forecast will override any EDI 830 forecast data sent by a Adient manufacturing plant. (Not applicable South America)

Each Adient plant may or may not require the supplier to ship according to the forecast release, and will contact the supplier to set this protocol up if it’s the desired method of delivery. In other words, the forecast release may also serve as the delivery signal. (Not applicable South America)

The authorization on a release is Adient’s financial commitment for released material.

Authorization for a cum amount and the lead-time required for a shipment are not synonymous. Lead-time is defined as the amount of time between recognition of an order and receipt of the order (can include manufacturing time as well as transportation time). This doesn’t translate directly into the amount of weeks Adient will provide financial commitment in a cum authorization.

4.4.3 Shipping & Delivery: Authorization to ship specific product will be communicated to the supplier through Adient plant designated replenishment method (MRP, KanBan, min/max, sequence). Within 90 days from SOP Adient will notify the supplier of the designated replenishment method. During launch or pre-production we will use MRP or spot-buys. Note: Replenishment method may vary from plant to plant. Please reference chapter 12, Replenishment Methodology, for further details on Adient’s standard replenishment tools.

A “Delivery signal” will show either a ship date or a delivery date. A delivery date defines when the goods are to be ultimately received by Adient. A ship date indicates the date which the supplier should ship the goods. In this context the delivery date does NOT mean delivery to carrier.

The supplier is expected to understand transit time and have product ready for shipment in order to meet the delivery date on the schedule, inclusive of transit time. Contact the Adient plant if you have any questions as to which date is being transmitted.




The supplier is required to:

1. Take ownership for all parts manufactured for Adient. 2. Control its processes to assure that the physical shipments correspond with the Adient

demand. 3. Ensure movement of containers is managed within Adient’s Container Management

System 4. Have the ability to meet either a 15% week to week net schedule increase or a 15% cum

increase over the period authorized under the raw and fab authorization. This does not apply once the supplier has been notified of a balance out. For an example of how Adient calculates this value, refer to the "Diamond" file attached at the end of this document.

5. Contact Adient plant Materials Representative(s) if supplier is unable to meet the replenishment schedule, and supply the following information: a. Date the parts will be available. b. Suppliers plan to get back on schedule. Assign the necessary resources to resolve

any delivery issues. c. If an established window time is missed or release schedule cannot be met, contact

your Adient plant representative for agreement on necessity of expedites. d. Obtain approval from Adient for the mode & carrier chosen. Every effort must be

expended to reach agreement on the expedited freight responsibility at the time of shipment. If the supplier is responsible, the freight must be shipped "PREPAID" and the supplier may choose their logistics company; however in North America it is strongly recommended that Active PTM (888-786-4321) is contacted. The supplier is also responsible for tracking the in-bound freight to Adient and advising the Adient plant Material Representatives as to shipment status.

A supplier will be held responsible for downtime and other associated costs (i.e. Premium freight or charter costs) due to their inability to meet delivery requirements, in accordance with the purchasing terms and conditions. If a supplier is behind in their ability to meet the required cum, the plant expects the supplier to have the cum caught up by the Monday following the lead time authorized. For example, if the authorization is for 6 weeks then the supplier should have the cum required produced and delivered no later than the following Monday by 8am EST.

4.5 Labeling Requirements

4.5.1 Labeling Introduction: The adherence to these labeling requirements, as well as the packaging requirements also stated within the Adient Supplier Standards manual, is mandatory and will be continuously monitored. Non-compliance to these instructions will be brought to your attention through the issuance of a DMR (Discrepant Material Report) by our receiving plant.

Suppliers must ensure that all materials shipped to Adient are correctly labeled and that the labels are properly attached. When labeling, verify that there are two labels per container on adjacent corners. The label must be placed in the upper left-hand corner of the main side. Whenever possible the label printing should be a bold black type with at least 25mm high letters. No more than one part number is to be packaged in a container or shipped on a pallet (unless noted as a mixed pallet). Supplier owned packaging with "Return to" labels must be located in a clearly visible area that does not interfere with the production identification labels.

Label protection against moisture, weathering, abrasion, etc., may be required in harsh environments and is encouraged wherever practical. Care must be taken to assure that labels meet reflectivity and contrast requirements and can be scanned with contact & non-contact devices.




It is the supplier’s responsibility to remove labels on returnable containers & affix a new label prior to shipment, unless prior arrangements have been made with the Adient receiving plant.

4.5.2 Part Shipping Labeling: All labels affixed to a container must contain the following information:

1. Adient Part Number 2. Quantity 3. Adient Supplier ID Number 4. Label Serial Number 5. Part Description 6. MFG Date (manufacturing date) 7. Part Revision Level 8. Lot Number/Batch Number/Heat Code/Etc. 9. International Build Statement (i.e. Made in Mexico) (Mandatory for Parts Crossing Borders) 10. Manufacturing Address (Actual address of supplier’s final assembly plant - name should

Mirror Adient scorecard plant location description to the fullest extent possible)

All containers must have the final Adient destination information affixed either as a master label on the skid or within their standard label format affixed to each container. Data required includes Adient site name, Adient site number (when known), Address, city, state and postal code. An example of an acceptable label is at the end of this section.

Other General Label Specifications

Label Size: 4.0 inches (102mm) high by 6.0 inches (152mm) wide.

Label Color: White label with black printing (there may be some plant specific color requirements).

Adhesives: Adhesive types can be pressure sensitive or dry gummed as long as adherence to the package substrate is assured and application is wrinkle-free. Note: If labels are applied to returnable packaging, the adhesive must not leave a residue after the label is removed, and the label must be easily removed without tearing. Paper is not preferred on returnable packaging.

Data Identifiers: All barcodes must have a data identifier. For example, the part number should have a leading “P” or “Q” for quantity.

The above definition is the minimum requirements. There may be other regional or plant requirements that can be requested. Some examples include:

• 2D Barcode (See Section 5.9)

• Colored label stock

• Delivery Note/Packing Slip Number

• Storage location in the plant

• Ship-to Address of the Adient plant the material is shipping to

• Etc.

4.5.3 Master Pallet/Mixed Pallet Labeling: When multiple containers of the same part number are placed on a single pallet, each container is required to be labeled as well as a master label for the pallet. The master label should contain the words “Master Label” and be placed on the outside of the shrink wrap. The individual container labels should be scanned to create the Master Label. The quantity on the master label should reflect the sum of the quantities of all of the individual container labels. See the sample below in section 5.6.




When release quantities require cartons of mixed material on one pallet, a special "Mixed Load" label and a “Master Label” for each part number and affixed on the outside of the shrink wrap must be used in addition to being labeled per Adient Labeling Specifications. See the sample below in section 5.6.

All containers must be loaded to cubic capacity to maintain load density, package integrity, and obtain optimum transport utilization. The following criteria must be observed when shipping mixed loads to an Adient plant:

1. Cartons must be uniform in size to maintain load stability. 2. Each pallet must have material / product for only one Adient plant. 3. Avoid shipping less than a full layer whenever possible.

Adient Supplier Scheduling should be contacted to establish load quantities into their releases.

For unit load packaging that is shrink wrapped, the master label and mix load labels must be applied to the outside. When individual containers are palletized and made into a unit load for mechanical handling, the master label shall be attached to two adjacent sides of the unit load.

4.5.4 International Shipment Labeling: Shipments to or from countries (e.g., Mexico, US, Canada, EU) may require special labeling, other than the Odette standard. Adient Trade Compliance team should be contacted to assist in obtaining the proper labels required if needed.

4.5.5 Sample Shipment Labeling: When shipping sample parts for Adient part submission or new revision level, the "Sample Part" label must be utilized and must contain the name of the site Packaging Engineer and / or the person expecting to receive the container.

Packaging Test shipments must have a "Sample Parts" identification label placed in a highly visible area and must contain the name of the site Packaging Engineer and / or the person expecting to receive the container.

Adient's requirements for shipping labels are based on the Odette / AIAG bar-coded format. Reference the AIAG Parts Identification and Tracking Application (B-4) document and the AIAG Trading Partner Labels manual (B-10) for labeling specifications.

4.5.6 Odette, Euro-Supplier Labeling Option: Adient recognizes the European automotive industry approved Odette transport label for the identification of packaging and container contents for suppliers located in Europe. The label is 'A5' size, and has standard printing with the addition of bar coding. It may be self-adhesive for expendable packaging or can be printed on paper and placed in a pouch or affixed to the container.

4.5.7 Adient SAP Implementation GTL Label Requirement: Adient began rolling out SAP to its plants in 2011. With that implementation, a new requirement for using the Global Transport Label began. This replaces any of the label requirements above. If you supply any of the plants live on Saturn SAP, this requirement applies to you. The label specification can be found in the forms section of the supplier portal.

4.5.8 2D Barcode Requirements

Adient requires a 2D barcode to be utilized on the label. Below are some of the requirements for the 2D barcode”

1. PDF417 is the required 2D barcode.




2. Minimum 2D barcode data content requirement: a. Part Number (P) b. Quantity (Q) c. Serial Number (S) d. Vendor Number (V)

3. Optional or as required 2D barcode data content: a. Delivery Number (packing slip) (2S) b. Manufacturing Date (12D) c. Batch or Lot (1T) d. Container Type (B) e. Eng. Change Level (2P)

4.5.9 Label Example: The attached is a specification that can be used as a guideline in building the label format.




Label Examples with the 2D Barcode

Master Label Examples with the 2D Barcode




Mixed Load Label Example

Label Field and Dimension and Layout




Font and Size Specification




4.5.10 Labeling Non-Conformance Process: For suppliers that do not meet the minimum standards, the Discrepant Material Report (DMR) process will be followed. Repeat issues will be issued an MQR.




4.6 Discrepant Material Reports

4.6.1 DMR Introduction: This procedure defines the process which Adient uses to communicate issues and monitor supplier performance with regards to accuracy of part shipments and accompanying documentation.

4.6.2 DMR Requirements: A DMR is issued when a shipment is received with one or more issues in the following categories; issues could occur at the header level, line item level or both. There are 2 DMR metrics which Adient measures:

1. DMRd : Delivery performance, based on reasons shown in bold below 2. DMRi: Information accuracy performance, based on remaining non-bold reasons shown

below.

Level Category Definition

Header Incomplete/Inaccurate Commercial Invoice

International shipment where the commercial invoice is missing info.

Header Late Shipment against Defined Delivery Window

Entire shipment arrives after scheduled window time and was not the fault of carrier delay

Header Missing Commercial Invoice

International shipment that was missing a commercial invoice

Header No ASN Supplier doesn't send an ASN for the entire shipment, or it arrives later than the shipment. Should be used for suppliers that are ASN capable or been told to be capable and have not complied.

Header Purchase Order Discrepancy

Wrong PO# shown on the packing slip or ASN.

Header Wrong Ship-to Address

Shipment that was sent to another Adient facility first or paperwork lists incorrect address. DMR is issued by Adient facility which ultimately receives it (NOT by the facility who received it by mistake).

Header Incorrect Freight / Routing Instruction

Shipment was delivered by the wrong carrier or through incorrect consolidation point

Line ASN Qty Different than Packing Slip

Quantity on the ASN doesn't equal the printed quantity on the packing slip. Not used for over or under shipments where a new item is shipped that didn't have an ASN.

Line Box Qty Different than Label

Quantity in the box doesn't equal the printed quantity on the label. Not used for over or under shipments where a new item is shipped that didn't have an ASN.

Line Incomplete/Inaccurate Packing Slip

Parts were shipped but not listed on the packing slip/ASN, or there was missing/inaccurate data on the Pkg slip/ASN




Level Category Definition

Line Incorrect Part Number on Label

Part number on the label doesn't match part number in the box

Line Label Non-Conformance

Label is not printed to Adient standards, e.g. missing barcode, missing part #, Qty info, or CoO (Country of Origin).

Line Late Shipment/Loading Against Defined Delivery/Pick-up Window

Item arrives after scheduled window time and was not the fault of carrier delay (could be applicable to one part that was thrown on the second day's truck. Plant should not issue an under shipment DMR when the first truck arrived w/o this part).

Line Non-conformance to Packaging Specification

Parts arrived in expendable when should have been in returnable’ s. Parts arrived in wrong sized containers, etc…

Line Over shipment Supplier shipped more pieces than required in the release; min/max; kan-ban. Assumes the ASN showed this increased Qty and matches the shipment.

Line Packing Slip Qty Different than Label

Packing slip shows 40 pieces, box / label show different quantity.

Line Purchase Order Discrepancy

Wrong PO# shown on the packing slip or ASN; wrong freight terms used for shipment

Line Under shipment Supplier shipped less pieces than required in the release; min/max; kan-ban. Assumes the ASN showed this decreased Qty and matches the shipment.

Line Returnable Container Non-conformance

Adient container assets not returned within 45 days of Adient shipping to supplier.

Failure to perform container bookings in Adient’s Container Management System

Line FIFO First in First Out Suppliers not shipping to FIFO

4.6.3 DMR Communication

DMR Communication to the Supplier

1. Receiving or Material Analysts’ identify information quality / shipment errors as close to the time of the receipt as possible and create a DMR issue within Adient internal IRIS system

2. The Material Analyst reviews the shipment documentation and evidence of the error and determines whether the DMR is valid. When the Supplier Scheduler approves the issue, an e-mail notification is automatically sent to the affected supplier and any additional people the Supplier Scheduler has entered into the issue.

DMR Supplier Response Expectations

1. Upon receipt of a DMR, the supplier is required to complete a 4D within 24hrs, and if required an 8D (See below for 8D instructions).




2. If the supplier believes that the DMR is inaccurate or unsubstantiated, the supplier may dispute the issue, which then prompts the Supplier Scheduler to either agree with the dispute, reject the dispute and return the DMR to the supplier, or override the dispute in order to allow the 4D to progress through the system.

3. The supplier is expected to assign an internal champion to address all DMR related issues and to provide timely and accurate responses to the issues that have been identified via the DMR.

4. The supplier's DMR champion must track the suppliers DMR performance, drive corrective action for all DMR's and communicate improvement plans to the appropriate supplier personnel (e.g., Account Manager, Customer Service Manager, Materials Manager, etc.).

DMR 8D Supplier Response Expectations

1. Provide the requesting Material Analyst an initial 8-D complete through the first 4 steps within one business day. This should include identification of all potential causes of the problem, how the problem was communicated to the scheduler, and immediate containment actions.

2. Provide the completed 8-D to Adient within 5 business days of the DMR. Repetitive errors or chronic problems with information accuracy may result in a MQR meeting, and if not resolved could escalate to a hold on new business for the supplier.

DMR 8D Material Analyst Responsibility

1. If the Material Analyst approves the dispute, the DMR is removed from the supplier’s record and considered closed. The related DMR quantity does not count in the DMR score calculation.

2. If supplier’s response (either dispute or 4D) is not obtained within one business day of issuance, Adient will consider the DMR acknowledged and close the DMR as accepted. The quantity will count against the supplier’s rating for that month, and it will be noted that the supplier did not respond or dispute.

3. If there is disagreement regarding a DMR between the Material Analyst and Supplier the Material Analyst will elevate it to their Business Unit Supply Chain Engineer for mediation

Corrective Action

1. Unless a dispute is accepted, the Material Analyst expects the supplier to perform corrective action. The Material Analyst reviews and tracks the corrective action submitted by the supplier for each DMR issued. The Material Analyst determines if the corrective action is effective and will close the DMR. Once a DMR is closed, it cannot be disputed, cancelled or reversed.

2. If corrective action is not effective, the Material Analyst issues an MQR in accordance with the Management Quality Review procedure.

4.6.4 DMR Ratings and Scorecard Review: Effective 2007, Adient has split the DMR Supplier Scorecard metric into 2 metrics:

1. DMRd – measures the delivery performance of your shipments. This score is worth 5 pts maximum in the supplier scorecard, and will sum the quantity discrepant for any items with the following reject reasons (shown in bold text above): a. Late Shipment Against Defined Delivery Window (header or line level) b. Over shipment c. Under shipment

DMRd score = [total pieces discrepant] / [total pieces shipped] * 1,000,000.




2. DMRi – measures the information accuracy performance of your shipments. This score is worth 5 pts maximum in the supplier scorecard, and will sum the quantity discrepant for any items issued for the remaining reject reasons

DMRi score = [total pieces discrepant] / [total pieces shipped] * 1,000,000.

Once a DMR is approved, the metric is automatically moved from Adient internal IRIS system to the Supplier Scorecard Application. Receipt information is added each month regardless of DMR activity, so if a supplier has no DMR’s in a given month, the DMR Score would be zero for that month.

The total pieces discrepant could exceed the total pieces shipped on any given shipment if there are multiple issues per shipment and/or short shipments (where pieces shipped would be zero, and pieces discrepant would be the ordered quantity).

Suppliers will be debited $250 US dollars or 250 Euros or local currency for every closed DMR issued. A DMR Debit Memo is issued to process the charges. The original is sent to Accounts Receivable and copies are forwarded to the site Controller and Buyer. The Debit Memo will be processed within five days of its receipt.

The current supplier goal is to have a score less than 3750 for each of the DMR metrics, DMRd and DMRi, to receive points in your scorecard. Below is a grid showing the minimum and maximum scores per point level.

Points

Minimum

Score

Maximum

Score

5 0 0

4 1 1250

3 1251 2500

2 2501 3750

1 37501 5000

0 5000 No max

4.6.5 Supplier Chargeback Communication and Expectations: Similar to the DMR notification, SCB notices may be automatically generated from Adient Electronic System(s) or provided as an E-mail attachment or hard copy form where electronic systems are unavailable.

Suppliers are expected to respond to a SCB within three working days. Failure to accept (or reject a SCB) within 30 working days will result in automatic debiting of all charges.

In cases where a supplier disagrees with the Supplier Chargeback, a written response to the originator of the SCB is still required by the specified due date. Disputed Chargebacks shall be escalated to the responsible Purchasing representative for assistance with final disposition. All Chargebacks should be targeted for closure within 30 days.

4.7 Logistics Requirements




4.7.1 Logistics Requirements Introduction: Logistics Requirements Adient- Purchasing, Logistics, or the Transport Desk (depending on the region) will determine carrier selection and routing instructions in order to effectively manage inbound freight through the careful consideration of these factors:

• Supplier location

• Product volume

• Packaging

• Transportation costs

• Lead time

Adient expects our suppliers to share in the ownership of the shipping process to ensure products are received in a timely and cost effective manner - essentially, at the right time, in the right container, at the right shipping price, to the right location. Below you will find supplier responsibilities necessary in order to fulfill our transportation requirements.

4.7.2 Logistics Requirements Communication: All shipments must be accompanied by appropriate documentation. Documentation may include, but not limited to, packing slip, bill of lading, FTA certificates, commercial invoices, CMR (EU and Asia) and hazardous materials information.

Carrier information must be included in the Advance Ship Notice (ASN) transmission to allow for trace ability and to ensure supplier compliance to Adient routing instructions. When electronic generation of the ASN does not exist the supplier is required to provide a faxed copy of the shipping documents.

(Excluding EU) The supplier is responsible for contacting the appropriate carrier, freight forwarder and Adient materials personnel to ensure timely pick-up and delivery. It is the supplier’s responsibility to set shipping window times in conjunction with Adient plant materials personnel and the carrier to ensure delivery at the Adient facility by the delivery date shown on the release.

(EU) The Adient plants will send release to supplier. Dates in the material releases are understood to be ready for collection from 08:00 am in the morning of the pick-up date in order to ensure lead times.

Any failure to meet the agreed upon shipping windows that result in carrier detention charges may result in a debit to the supplier to compensate for excess carrier detention charges.




(Excluding EU) Information to be provided should include, but may not be limited to, product availability, expected delivery time, special instructions, container dimensions, and weights. If shipping less-than-truckload quantities to one ship-to location, each skid must include a label indicating the plant name and address.

(EU) Adient Transport Desk knows in advance what to collect and all related information.

4.7.3 Packing Slip Requirement: Adient requires all suppliers to prepare their packing slip(s) in a standard format. The standard format can be found below, as well as within the forms section of the Standards Manual website.

Mandatory: Packing slip must be attached (glue or tape) to the packaging (pallet shipment). The packing slip must be in a pouch/sleeve that protects it but also allows it to be removed by receiving plant.

Failure to comply with this requirement will result in a DMR for the shipment per the DMR procedure. Items required in a specific location include:

• Packing Slip #

• Sold To info

• Supplier Production Plant

• Ship to

• BOL #

• Customer part #

• Description

• Supplier part #

• Quantity shipped

• PO #

• Footer which includes page number and repeats the pkg slip # Packing Slip Bill of Lading Information Requirements

4.7.4 Bill of Lading Requirements: The following information instructs a Adient Supplier on how to properly complete a bill of lading (BOL) form for shipments that are sent collect into Adient. Non-compliance to these requirements that result in excess freight charges to Adient will be debited back to the Supplier.

A separate bill of lading must be created for each ship-to location, even when shipping on the same carrier. Each BOL must contain a unique BOL #.

Shipper/Vendor Information

Must include: Vendor Name, Supplier ID, Street address, city, state, and zip.

Example 1

Akko Fasteners

Supplier ID 302412

6855 Cornell Rd

Cincinnati, OH 45242

Example 2

Akko Fasteners - 302412

6855 Cornell Rd

Cincinnati, OH 45242

Consignee and Destination

The Ultimate Consignee should be shown as: Adient, Plant name, and Plant #.




The Destination must include: Street address, city, state, and zip, and c/o where applicable.

Direct Shipment Consolidation Shipping through a Broker to Mexico

Adient Maplewood #18602

East 48th Street

Holland, MI 49423

Adient – Rockwood # 18620

c/o CMAC

19661 Brownstown Center Dr. Suite 600

Brownstown, MI 48183

Adient Ramos Metals #2403

c/o Dicex

12110 Sara Road

Laredo, TX 78042

The three examples above are not intended to replace current shipping instructions.

In addition to the above information, your BOL must include:

1. Number of Packages and/or Handling Units - If packages are consolidated on a skid, provide both package count and skid count on the bill of lading.

2. Description of shipment - Enter the description of each line item. Please note the type of package (carton, tote, barrel, etc.) and the quantity per package. Each line item must include the correct National Motor Freight Classification (NMFC) Item # and Class. This information is critical to ensure correct rating so as to avoid excessive charges.

3. Weight - Enter the total gross weight, in pounds, for each line item. Include the weights of pallets, skids or any secondary container.

4. Freight Terms – (for domestic shipments only) Indicate ’FOB Origin, Freight Collect’ terms if Adient is responsible to pay for the shipment. All freight shipped to Adient facilities should be shipped per the incoterm on the Purchase Order unless the shipment is a Supplier paid expedite or routing deviation.

4.7.5 Routing Instructions: Where Adient is responsible for paying freight charges, a routing instruction will be provided to the supplier. The routing instruction will include at least one primary carrier and an expedited carrier, and is issued by each Adient receiving location.

It is the supplier's responsibility to ensure compliance and availability. Contact your appropriate plant materials personnel if you have not received a Supplier Specific Routing Instruction. A copy of the routing instruction must be signed and returned to the Adient plant materials contact.

(EU Exception) In EU, the Adient Transport desk manages a portion of the transportation, and in these instances, no routing instruction will be issued.

Plant approval must be obtained from the receiving plant materials personnel for any routing instruction deviation. Any deviation from these routing instructions without plant approval may result in a supplier debit to compensate for excess freight charges and/or administrative fees.

4.7.6 Premium Freight/Expedites: Any premium freight which results from a supplier event will be managed and paid for by the supplier. For international shipment this also include export/import broker costs. Adient will not take responsibility for the set-up, management, tracking or payment of a supplier-caused premium freight event. The supplier will communicate to the plant all expedite information and provide milestone updates to keep the plant informed on the arrival of the expedited components. Adient reserves the right to take-over the management of the premium freight event if the supplier fails to communicate and effectively manage the event themselves. In these cases, the supplier may be charged for Adient’s time.




When expediting freight at Adient expense, authorization must be obtained from the appropriate Adient receiving plant materials personnel. Unauthorized expedited freight may result in debit to the supplier to compensate for excess freight charges and/or administrative fees.

(NA) Adient utilizes Active PTM (888-786-4321) to manage all premium freight shipments into our facilities.

(EU) Adient utilizes Flash, Intime, or any other selected & nominated premium freight carrier.

Upon authorization of an expedite shipment, the supplier should be prepared with the following information to share with the arranging party: 1. Protect time (the time by which the shipment must arrive) 2. Ready time (the time by which the shipment will be ready for pickup) 3. Shipment terms (collect if at Adient’s expense) 4. Origin

a. address b. contact c. operating hours of shipping facility

5. Shipment details a. weight b. dimensions c. stack ability

6. Destination details a. address b. contact c. plant number

4.8 Cumulative Maintenance

4.8.1 Cumulative Maintenance Introduction: The generation, verification, tracking and reconciliation of cums is the standard requirement for Automotive Tier 1 suppliers, including Adient. Cums are a way to identify the amount of product that is required to ship to your customer. Adient expects the supplier to reconcile cums upon receipt of each EDI release. Identifying and initiating the resolution process of cum discrepancies is the responsibility of the supplier. The definition and procedure is defined below.

4.8.2 Cumulative Maintenance Communication: Adient will provide the supplier with the following:

1. A starting cum of 0 upon issuance of a new purchase order 2. Last cum received quantity will be noted on each EDI release. Each shipment received will

be accumulated to provide the last receipt cum received. This will include the last quantity received, date received into Adient inventory, and the supplier packing slip number received by the Adient manufacturing facility. The last receipt cum received could potentially change under the following conditions :

a. Subsequent receipt of shipment into Adient's inventory b. Issuance of Supplier Material Return (SMR) or a Discrepant Material Return (DMR).

Issuance of an SMR or DMR may result in either an increase or decrease of Adient cum received.

c. Cum reset (may be done annually). Supplier will be notified prior to this occurring. 3. An electronic or manual release indicating net quantity due and total cum required per due

date. 4. Prior cum required quantity - this field will represent the previous quantity due.




5. Physical copy of SMR or DMR to support cum resolution.

Adient expects the supplier to:

1. Track and accumulate all production part shipments. This will become the supplier's cum shipped quantity.

2. Update suppliers cum shipped quantity when the supplier is issued a SMR or DMR. 3. Identify past due quantities - using the most current release the formula is the Adient last

cum received quantity minus the prior cum required quantity. 4. Identify Adient cum required - using the most current release formula is the Adient last cum

received plus the net quantity due (If an alternate replenishment method is designated by Adient, the cum required will serve as forecast data rather than replenishment requirements).

5. Net quantity required is calculated using the most current release’s cum required minus the suppliers cum shipped quantity.

6. Resolve any cum discrepancies with the appropriate Adient materials personnel immediately.

Please direct any questions regarding cumulative maintenance to your Adient plant materials contact.

4.9 Balance Out and Claims Process

4.9.1 Balance Out and Claims Process Introduction: Balance Out and Claims Process - Adient believes that obsolete material claims can be avoided by minimizing lead times, strictly adhering to production schedules, and properly managing inventory received by our suppliers. Most obsolete material claims occur at the balance out of a product. Balance out is defined as end of model year as well as current model engineering changes. Our goal at balance out is to have zero obsolescence.

4.9.2 Balance Out and Claims Process Communication: One of the tasks in our balance out process requires the Adient materials plant representative to notify, in writing, the source supplying the components to be balanced out. Adient notification of balance out as well as defined balance out filing parameters will take place outside of the established authorization window. Claims received after the established deadline may not be honored.

After receiving balance out notification, any supplier planning to produce a contractual minimum run order which exceeds raw/fab authorization must first receive written approval from the Adient supplier scheduler or balance out coordinator.

In the event that obsolescence occurs due to the discontinuation of a part, the following procedure must be followed to file a claim:

1. Determine the highest RAW and (FAB) fabricated material authorizations issued by Adient. To determine the highest RAW/FAB authorizations, a cumulative release history must be reviewed. The 15% rule is no longer a requirement once a B/O notification has been issued. In addition, suppliers should refer to the "High Release" and/or their Purchase Order for RAW/FAB authorizations.

2. Fill out the "Obsolescence Claim Form" and attach the supplier management or schedule/release documents, purchase order, and any minimum run authorizations to support the claim.




3. All obsolete material must be segregated and stored, pending audit and final disposition by Adient and/or the OEM.

4. External supplier claims totaling less than $500.00 aggregate will not be submitted to the OEM, nor paid to the supplier.

5. Supplier must obtain Adient plant authorization in order to sell claimable material at a price lower than unit cost. The following forms can all be found in the Forms section of the Adient Supplier Standards Manual.

4.10 Replenishment Methodology Requirements

4.10.1 Replenishment Methodology Requirements Introduction: In order to standardize supply chains, optimize inventory levels and minimize freight expense, Adient has defined four replenishment methods to order material from our supply chain partners.

Our goal is three-fold:

1. Optimize turns, truck utilization, and prevent premium freight by using one of 4 standard methods per discrete supply chain; minimize use of other methods

2. Maximize internal & external visibility of component parts 3. Appropriate use of technology & electronic commerce to communicate replenishment

signals

This means that a supplier could receive different replenishment signals from different Adient receiving plants, and a single Adient plant could use different signals with different suppliers. A supplier should not have multiple signals from the same Adient plant, unless they are going through different stages in the product life cycle.

Why not just ONE method?

The determination of which method is used is based on many components, but to simplify this explanation it depends on the following:

1. Lean manufacturing strategy – or where the Adient plant is at in their journey to lean manufacturing.

2. Stability of customer demand 3. Supply Chain footprint – or how close the shipping point is to the end destination.

To determine the optimal replenishment method to use for each component, Adient plants will follow a standardized process annually or when operational or supply chain conditions shift (i.e. when a supplier moves production to another location that is geographically different than the existing supplier location). Adient will communicate these changes to the supplier as soon as possible.

(NA Only) Suppliers who ship either in truckload quantities or as part of a milk run may be requested to utilize future forecasted demand (within raw and fab authorizations) to fill allotted space on the designated carrier. The supplier should utilize future demand from material according to priority level, e.g. a part with additional demand 2 days out should be used before demand showing due 2 weeks out. When there is a choice, the supplier should always ship the higher runner first. Suppliers not filling their allocated space may be liable for freight costs associated with lost utilization opportunities. Pulling ahead in order to fill a truck will not result in an over-shipment DMR in these instances.

The four methods are:




1. MRP - Use of standard EDI signal (i.e. 830 and 862) to communicate required shipment quantities. –

2. KanBan - KanBan may be communicated either via e-mail, internet, or through a visibility tool (i.e. Trade beam) –KanBan provides discrete quantities the supplier must monitor and use to calculate required shipment quantities.

3. Min/Max - Through the visibility tool, Min/Max provides a range of acceptable inventory levels the supplier must monitor and use to calculate their required shipment quantities.

4. Sequence - Replenishment data that is sent to suppliers to optimize truckload utilization and/or prioritize shipments. This method is commonly used when suppliers make multiple deliveries in the same day to a given Adient site.

The following visual shows how the different methods fit together given an increase in lead-time and/or demand variation.

4.10.2 Visibility Replenishment Tool used for Min/Max and I-KanBan

(NA Only)Two of the above methods (min/max and electronic KanBan) utilize the Adient defined tool for visibility and lean replenishment. If the Adient customer plant determines that min/max or I-KanBan is the appropriate methodology, they will contact each supplier to advise them of the decision that they will be using min/max or I-KanBan.

Each supplier must then gain access to, attend training for, and work with the customer plant to define and implement the operating procedure and parameters for using the visibility/lean replenishment tool. This requirement must be met in order to be considered for an annual award. On a periodic basis the plant will revisit the matrix to ensure their replenishment method is still optimal. If the plant determines that one of the other 3 methodologies is optimal, they will contact the supplier and work with them to implement the change.

Exceptional Conditions Only

Sequence

FIT Order and Delivery within Broadcast Drawback System Limitations

I KANBAN

FIT 1. Supply at rate of

consumption 2. Simplest for

discrete shipments Drawback Potential Reduced T/L Utilization

I MIN MAX

FIT 1. Supply at rate of

consumption 2. T/L Utilization

w/flexibility Drawback More Complex for Flex Shipments

MRP

FIT 1. Firm Push 2. Truckload

Utilization Drawback Misalignment Consumption and Supply

Lead Time and Demand Variation LOW HIGH




The Manual Replenishment Release form would be acceptable in conditions where it is not possible to use one of the four designated Adient replenishment methods.

• System failure, power outage, MMS failure, etc.

• Sequenced Loads: Situations where demand is communicated to the plant in the form of lots or sequenced and the plant utilizes this information to sequence material directly to the production line.

• Trailer mapping: A material map is provided to prioritize the location of material on a trailer due to limited plant floor space (warehouse on wheels), thus enabling accessibility to material that would be used first.

• Multiple Loads per day: Multiple daily shipments, i.e.16 foam loads per day, may require Adient to prioritize the flow of material.

• Critical Requirements Adient recognizes that there may be times where demand may have to be prioritized for a supplier in critical inventory situations.

In such cases, it is acceptable to define critical inventory requirements to a supplier through a spreadsheet that simply defines and prioritizes from the existing replenishment signal requirements.

4.11 Materials Management Operations Guideline

4.11.1 Materials Management Operations Guideline Introduction: The Materials Management Operations Guideline (MMOG/LE) is a global document jointly created by the Automotive Industry Action Group (AIAG), Odette representatives, OEM representatives, and automotive suppliers.

It is a document with recommended business practices for the supply chain management processes of automotive industry suppliers, and is intended to establish a common definition of materials practices to facilitate effective communication between supply chain partners.

The purpose of the MMOG/LE, as well as the reasoning behind the deployment of this by Adient Inc, is to produce one common material planning and logistics evaluation that can be used by the supplier and customer throughout the product life cycle, including the early development phases.

The MMOG/LE is being deployed with our suppliers as a self-assessment tool; although Adient reserves the right to audit MMOG/LE scores by conducting an onsite review of supplier facilities. The MMOG/LE was re-written by AIAG in 2009, and the new version is the only accepted version. It is also known under the product code “M-7” on the AIAG website.

Suppliers can purchase a download of the MMOG/LE publication or attend training on how to use the assessment by contacting AIAG on the internet at www.aiag.org, or calling (248) 358-3003.

4.11.2 Scorecard Performance: A MMOG/LE should be completed for each supplier shipping location (child location on the scorecard) to Adient in order to serve as a guideline in developing their materials management business processes. It only has to be submitted once per location, but on an annual basis Adient expects the supplier to review their status and notify the scorecard manager if the score has changed.

(US)Adient Supply Chain Scorecard Manager: [email protected]

(EU)Adient Supply Chain Scorecard Manager: [email protected]

http://www.aiag.org/




4.12 Security

4.12.1 Security Introduction: Adient is committed to ensuring the security of its supply chain. Security measures are set in place with the primary goal of preserving the safety of our employees, protecting the physical property from loss or damage, safeguarding the integrity of our intellectual property and preventing interruptions in the manufacturing process.

We expect the same approach to be taken by the supplier with whom we conduct business: to make a commitment toward the common goal of creating a more secure and efficient supply chain.

4.12.2 Security Procedure Requirements: Suppliers should develop and implement a comprehensive security plan throughout their operations and supply chain, following the recommendations outlined by the specific country’s security program where the supplier is located. For example if a supplier is located in Canada, they should follow the security guidelines for PIP (Partners in Protection). Other country security programs are as follows: EU (AEO), US (C-TPAT), MX (NEEC).

All suppliers that ship across an international border to an Adient plant located in North America will receive an annual Security Assessment sent from our 3rd Party provider Pinkerton. This assessment must be completed in order for Adient to complete a security risk assessment for our supply base and maintain compliance with its C-TPAT certification for locations in US, Mexico and Canada.

Failure to complete the assessment may result in a site visit by Pinkerton at the supplier’s cost.

If an assessment shows a security risk to Adient, a site visit may be conducted by Pinkerton at Adient’s cost.

If you have any questions regarding the survey you may contact

• Richard Paulin, Pinkerton : [email protected] (415.808.1705)

• Tamara Stilwell, Adient : [email protected] (616.394.8378)

Country specific security programs covers multiple business points, including but not limited to:

• Business Partner Requirements

• Security Procedures

• Participation/Certification in Foreign Customs Administrations Supply Chain Security Programs

• Container Security & Inspection

• Container Seals

• Container Storage

• Physical Access

• Visitors Controls

• Pre-Employment Verification and Personnel Termination Procedures

• Shipping & Receiving Security Procedures

• Cargo Discrepancies

• Security Training and Threat Awareness

• Physical Security

• Information Technology Security

mailto:[email protected]




4.13 Free Trade Agreements

4.13.1 Certification Requirements: As put forth in our global terms and conditions, Adient suppliers are responsible for providing timely and accurate responses to solicitations relative to Free Trade Agreements. This is true whether or not a supplier ships product across an international border.

Trade agreement certifications may be solicited by Adient or by a designated service provider. It is expected that suppliers will respond to the solicitations by the deadline provided.

Suppliers should note that signing the various documents carries the legal obligation to advise Adient of any changes that would affect the accuracy or validity of the information. This notification must be in the form of an amended document.

Suppliers that fail to comply, risk losing their eligibility for a supplier award via a supplier scorecard rating deduction and/or the ability to quote on new business.

4.13.2 Scorecard Performance

All suppliers are credited with 2 points for compliance on their scorecard to begin the year. Points are deducted if a location is solicited for a free trade agreement and fails to respond by the due date stated on the solicitation. There are 2 scorecard values:

As required = 2 points

Late = 0 points

4.13.3 Training: Training is strongly recommended for all suppliers for the specific Trade programs pertaining to your region.

4.15.13 Adient Baseline RASIC SSOW




5.0 Records/Logs

Not applicable.

6.0 References

Adient Supplier Portal: https://www.adient.com/suppliers
https://www.adient.com/suppliers